REIT which stands for real estate investment trust...have u heard bout this b4?

may i know wat is the requirement for this type of investment?i heard my fren said that the min investment is rm10k soemthing but wil guarantee the return ...is it truth?any1 invest b4?pls giv me some advice on its bcos i m the ppl really interest on investment and believe that investment can make a lots of profit..juz wanna know whether this is a good to invest or not?

Is it Ambank REIT your friend refering to ?

REIT concept is similar to mutual funds, except it pools the investors money to invest in real estate. These REITs purchase a neighborhood instead of a unit of house here and there like individual investors do. If we look at the historial data, stock market offers better return than property market over time (and of course stocks bear higher risk).

If you are looking for a conservative->moderate investment with fixed income over time, REIT could be suitable for your portfolio.

FYI, Public Mutual is going to launch a Far East Property Fund on July 10th. If anyone is interested to learn more about it, can pm me.

This is totally bullshit, sorry no offence.

Invest in Reit is almost as same as owning a property then rent it out and the rental income will the main source of income but you can't say it is guaranteed, right? It depends on whether got tenants for property as well as they pay up for it.

Then if the property price went up, then you get the capital appreciation from it.
Reit return = rental income + capital appreciation/depreciation

Currently, local reit yield is ranging about 6-8%.

There are some UT/fund that invest in primary in properties and reit, also there are some reit listing in KLSE like Stareit, Axreit, UOAreit etc which you can buy or trade as like ordinary share, aka min 100 shares.

is da same thing in HK REIT ??

6-8% ? i tot guarantee is 10%?

if no people rent from you who will pay you 10%?

No such thing as guaranteed 10%. If yes, everyone would empty their fixed deposits and buy REITs. Since FD is the only guaranteed investment in Malaysia next to ASB. So please don't believe everything you hear or read.

REITs depends on the property market. If the property market is HOT, and rentals shoot up, the prices of REIT would reflect that. If property is in excess and rental comes down, so will your REIT prices. Appreciation in property is only paper gain until the REIT sells the property. Until it does so, it will not be reflected as profits and will not be distributed to investors of REIT. As REIT distributes 90% of its profits back to investors as dividends after management fees.

And profits meaning their rents collected, not property prices. So if a REIT reports that their property holdings has rise 50% in value, it will not benefit you until they sell that property and realised their 50% gain. As long as they hold on to that property and collect rent from it, the 50% in value means nothing to you in dividends.

This post has been edited by skiddtrader: Jun 28 2007, 02:53 PM

well, REITs maybe falling out of favour soon, with property prices peaking around the world and interest rates rising; well for Malaysia, we still have some ways to go before that happens - so invest and make money while we still can

REIT, same like normal share buying/selling @ 100 share per lot. Meaning min investment is around RM100 for a 1.00 REIT. Normal dividend yield for REIT r around 5-8% and it's not guaranteed, can be 0% also but highly unlikely coz REIT have to distribute min 90% of the net profit as dividend, so shouldn't be 0% le, don't worry. REIT prices traded on the KLSE r quite stable a.k.a boring, but recent speculation on property had hike some REIT stock to new high.

I got my last research done few months ago. Have not invested in any yet. But can pay attention to

AXREIT
DPS 2006: 12.95 cents
DPS 2005: 4.70 cents
PE 2006: 20.85
PE 2005: 4.87
DY 2006: 6.78%
Property model: Mainly office and industry.

TWRREIT
DPS 2006: 5.34 cents
DPS 2005: none
PE 2006: 21.57
PE 2005: none
DY 2006: 5.39%
Property model: Mainly office

UOAREIT
DPS 2006: 8.50 cents
DPS 2005: none
PE 2006: 8.67
PE 2005: 0.40
DY 2006: 7.20%
Property model: Mainly office

Others, not so good for long term.

There is this QCAPITA. From the data collected(news and so on), the future is great. but my research said another way round.

ps: my research information might be wrong.




This post has been edited by edifgrto: Jun 28 2007, 10:08 PM

hmm, this thread has been 'dead' for a month...thought i'd give it some cpr and see whether it comes back to life

with increased in stock market volatility recently maybe it's good to look at REITs for dividend yield and long-term capital appreciation; however i find very little research into REITs in general

looking into the general trend, REITs seem to be on a slow but steady uptrend along with the market

anyone here into REITs? i have ATRIUM REIT but dunno whether it's a good idea...just following research recommendation by Aseambanker

yeah, reits has no guarantee, if anyone says it is, it's cow dung.


REITs in malaysia are taxed right? even tho different investment class, i still prefer to go for stocks with capital gains which are not taxed.

i thought there were no taxes on capital gains? REITs can have capital gains too; their attractiveness lie in the dividend yields...maybe a better option in volatile times since their dividend yields are above the market average

do pay attention to the asset quality of the REIT it is a pre determining factor of future investment return location & how well the asset is being managed (maintenence) and what was the acquisition cost of those assets when the fund was launched vs current market value..

Eg if a REIT fund is launched at the bottom of a property bust, the cost basis is low .. less downside comparing if the REIT is launched near the top of the property boom..

true...but are we in the early, mid or late stages of a property boom?

The distribution (or dividend if you like) is taxed at 15% (local) & 20% (foreigner)

All Capital gain in Malaysia is not taxable including reit.

Property boom? only when 1995-1997. Since after that, Malaysia property market is just almost flat throughtout overall.
Yes, properties price did go up but more due to inflation(construction materials) and some residential properties and selector sectors rather than because of strong demand as in early 90s.

The key fundamental of reit, is well-managed, strategic properties, pricing is not overvalued and if can, better don't have conflict of interest between the large shareholder and its tenants.

This post has been edited by cherroy: Jul 29 2007, 03:24 PM

so we can claim back tax credit on this 15% tax? and why do they call it a withholding tax?

hello cherroy,

coming back to the last question on REIT:-

so we can claim back tax credit on this 15% tax?

please advise, thanks

As far as I concerned, no, you can't claim back the withholding tax, not the same with income tax on normal dividend.

Driven by tax benefits.

The government has provided several incentives to make Malaysian REITs an attractive investable instrument. In addition to providing tax exemption to REITs (subject to minimum distribution levels), Budget 2007 introduced a reduction in tax rates for institutional and retail unitholders. Retail unitholders are subject to withholding tax of 15% for dividends received from the trust. This means that dividends received at the hand of retail investors are no longer subject to further taxation. This tax incentive is particularly beneficial to retail investors who are subject to tax brackets of over 15%. We believe the government could potentially provide more incentives in the upcoming Budget 2008 as it continues to actively promote REITs.

High dividend yielding instrument.

One of REIT's main attraction lies with the fact that it distributes almost all its income as dividend to unitholders. Malaysian REIT is currently yielding approximately 7.2% on average for 2007. At 7.2%, it compares favourably with other instruments in the market even after taking into account withholding tax of 15% for retail investors.

This post has been edited by Neo18: Nov 24 2007, 03:56 PM

http://www.globalpropertyguide.com/country.php?id=117

a global site about real estate market in the world, this is about malaysia.